📌 Method: MemberMonthlyRecurringRevenue
This article explains how we calculate monthly revenue from recurring memberships.
How is MRR calculated?
Filter memberships
Only memberships with a recurring payment (e.g. monthly or annual payments) are included.
Find invoices in the period
All purchases and payments during the specified period are deducted from the database.
Calculation:
Total revenue for the period is divided by the number of returning members.
Group by segment (gender, age, or aggregate).
Data is broken down to understand revenue across different groups.
Example calculation
We calculate the MRR for January, February and March:
Month | Billed revenue | Number of active subscribers | MRR per member |
January | 100,000 kr. | 200 | 500 kr. |
February | 105.000 kr. | 210 | 500 kr. |
March | 95.000 kr. | 190 | 500 kr. |
Calculate MRR for March:
95.000190=500 kr. per member\frac{95.000}{190} = 500 \text{ kr. per member}19095.000=500 kr. per member
Compare MRR over time:
An increase means growth, while a decrease can indicate a loss of subscribers.
Why is this important?
MRR is a crucial KPI for subscription-based businesses as it shows the expected recurring revenue. Businesses use this number to:
✅ Predict future revenue
✅ Identify subscriber
✅ growth or decline Plan marketing and customer engagement
💡 Result: A graph showing the monthly recurring revenue over time.
Do you have any questions? Contact us via the Intercom chat! 😊